scholarly journals Pyramid groups and firm performance: empirical evidence from Canadian corporations

2010 ◽  
Vol 7 (3) ◽  
pp. 105-123 ◽  
Author(s):  
Gloria Y. Tian
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Negative Impact ◽  
Ownership Concentration ◽  
Legal Environment ◽  
Controlling Shareholders ◽  
Value Maximization ◽  
Using Data ◽  
Control Enhancing Mechanisms ◽  
And Control

Using data of Canadian corporations in 1994 and 2003, this study analyzes whether controlling shareholders of corporate pyramid groups, with substantial divergences in ownership and control, negatively or positively impact firm performance. We find some evidence that the combination of ownership concentration and pyramidal structure would lead to inferior firm performance and valuation, but little evidence concerning tunneling within groups. We argue the robust legal environment in Canada that encourages shareholder value maximization could mitigate the negative impact of control enhancing mechanisms on minority public investors.

scholarly journals The Effect of Enterprise Risk Management (ERM) on Firm Performance: Evidence from the Diversified Industry of Sri Lanka

2018 ◽  
Vol 10 (1) ◽  
pp. 75
Author(s):  
Kingsley Karunaratne Alawattegama
Keyword(s):  
Firm Performance ◽  
Sri Lanka ◽  
Empirical Evidence ◽  
Negative Impact ◽  
Positive Impact ◽  
Enterprise Risk Management ◽  
Performance Information ◽  
Return On Equity ◽  
Enterprise Risk ◽  
And Control

The objective of this empirical study is to explore the effect of the adoption of ERM on the performance of the diversified industry of Sri Lanka. The extent of the adoption of ERM is assessed based on eight ERM functions recognized by the ERM integrated framework of the committee of sponsoring organization of the Treadway Commission and use return on equity as a proxy to measure firm performance. This study finds ERM supportive internal environment, risk-aligned objective setting, event identifications, and risk response have a positive impact on firm performance. However, none of those impacts were statistically significant. Surprisingly, empirical evidence reveals that risk assessment and control activities have a negative impact on the firm performance. Information & communication and monitoring functions indicate a significant impact on firm performance. Nevertheless, monitoring function shows a negative impact on the firm performance. The researcher believes this negative impact is attributable to the increased cost of monitoring activities that is crucial for a diversified business setup. This empirical evidence induces the researcher to conclude that, except for communication and monitoring, the adoption of ERM has no significant impact on the firm performance. These findings are contradictory with the findings of prior researchers.

scholarly journals Board structure, ownership concentration and corporate performance: Italian evidence

2017 ◽  
Vol 15 ◽  
pp. 347-359 ◽  
Author(s):  
Vincenzo Scafarto ◽  
Federica Ricci ◽  
Gaetano Della Corte ◽  
Pasquale De Luca
Keyword(s):  
Firm Performance ◽  
Negative Impact ◽  
Ownership Concentration ◽  
Substitution Effects ◽  
Board Independence ◽  
Governance Mechanisms ◽  
Board Size ◽  
Full Independence ◽  
Board Level ◽  
The Impact

This paper investigates the interplay between board-level governance characteristics, ownership concentration and firm performance in the Italian corporate landscape, which is characterized by high (though varying) degrees of ownership concentration. The empirical setting of this study is the Italian stock market and specifically a sample of non-financial firms included in FTSE MIB and mid-cap index of Milan stock exchange, spanning a five-year time period from 2011 up to 2015. We regressed an accounting proxy for firm performance, namely the return-on-asset (ROA) ratio, on several board-level governance variables and specifically board size, board independence, CEO-chairman duality and audit committee (ACD) full independence. In doing so, we also controlled for the impact of different levels of ownership concentration by partitioning the sample into firms with lower and-higher-than-median values of ownership concentration (OC). The empirical results indicate that board characteristics differently impact performance in firms with lower levels of OC compared to firms with higher OC. Specifically, in lower-OC firms, board independence and AC full independence have a negative impact, whereas CEO duality (either alone or interacted with board independence) has a positive impact on performance. Conversely, higher-OC firms benefit from a large board size and are negatively affected by AC independence, while the remaining variables are not significant. The key insight to be gained from our evidence is that the individual and interaction effects of board-level mechanisms may be contingent on the presence of other governance mechanisms (in this instance, the degree of ownership concentration). As such, this research adds to the existing literature questioning the ‘one-size-fits-all’ approach to corporate boards. In terms of practical implications, our findings support the notion that firms might consider the potential interaction and substitution effects between governance mechanisms and structure boards accordingly.

Independent directors, ownership concentration and firm performance in listed companies

2017 ◽  
Vol 29 (2) ◽  
pp. 204-226 ◽  
Author(s):  
Thi Tuyet Mai Nguyen ◽  
Elaine Evans ◽  
Meiting Lu
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Ownership Concentration ◽  
Independent Directors ◽  
Content Type ◽  
Controlling Shareholders ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the impact of independent directors on firm performance in Vietnam and identify how different types of ownership structure and the presence of controlling shareholders influence the relationship. Design/methodology/approach For a sample of 217 non-financial Vietnam-listed companies during the period from 2010 to 2014, this study uses the ordinary least squares regressions to estimate the relationship between independent directors and firm performance. Two econometric techniques – the fixed effects estimation and the difference in difference estimation – are used to control for endogeneity. The results are also robust to the lag variable of independent directors. Findings The results reveal that independent directors have an overall negative effect on firm operating performance. This finding may be because of information asymmetry, expertise disadvantage and the dominance of ownership concentration that prevent independent directors from fulfilling their monitoring function in governance. The negative relationship between independent directors and firm performance is stronger in firms where the State is a controlling shareholder. Research limitations/implications Findings suggest that changes relating to independent directors, as a response to the new corporate governance code in 2012, do not have a positive effect on the relationship between corporate governance and firm performance. Further reform is required to improve internal control mechanisms and corporate governance systems in Vietnam. Originality/value This is the first study to provide a robust evidence on the relationship between independent directors and firm performance in Vietnam as well as to explore the impact of the type of controlling shareholders on the relationship.

scholarly journals DOES STATE CONTROL AFFECT MANAGERIAL INCENTIVES? EVIDENCE FROM CHINA'S PUBLICLY LISTED FIRMS

2009 ◽  
Vol 10 (4) ◽  
pp. 291-311 ◽  
Author(s):  
Chen Lin ◽  
Dongwei Su
Keyword(s):  
Firm Performance ◽  
Managerial Incentives ◽  
Ceo Turnover ◽  
State Ownership ◽  
Managerial Compensation ◽  
State Control ◽  
Listed Firms ◽  
Internal Governance Mechanisms ◽  
Using Data ◽  
And Control

Using data for 1203 publicly listed firms in China during 1999–2002, this paper empirically investigates whether and to what extent state control affects managerial incentives, including managerial compensation and CEO turnover. The paper finds that CEO turnover is negatively related to both current and lagged firm performance as measured by ROA and RPE (Relative Performance Evaluation) for non‐state‐controlled firms, while insensitive to performance measures for state‐controlled firms. In addition, CEO compensation is positively related to firm performance, but state ownership and control weaken this positive relation. Moreover, state control reduces the effectiveness of internal governance mechanisms such as the board of directors and supervisory committee. Overall, empirical results in the paper indicate that state ownership and control weaken managerial incentives and internal monitoring among publicly listed firms in China.

Effect of networks on product innovation: empirical evidence from Indonesian SMEs

2013 ◽  
Vol 1 (2) ◽  
pp. 140-158 ◽  
Author(s):  
Nurul Indarti ◽  
Theo Postma
Keyword(s):  
Empirical Evidence ◽  
Product Innovation ◽  
Dynamic Effects ◽  
Depth Of Knowledge ◽  
External Knowledge ◽  
Software Firms ◽  
Using Data

Innovative companies generally establish linkages with other actors and access external knowledge in order to benefit from the dynamic effects of interactive processes. Using data from 198 furniture and software firms in Indonesia, this study shows that the quality of interaction (i.e. multiplexity) as indicated by the depth of knowledge absorbed from various external parties and intensity of interaction (i.e., tie intensity) are better predictors of product innovation than the diversity of interaction.

Momentum Effect in Stock Market: Empirical Evidence from Pakistan Stock Exchange

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Shahid Rasheed ◽  
Umar Saood ◽  
Waqar Alam
Keyword(s):  
Stock Market ◽  
Empirical Evidence ◽  
Stock Markets ◽  
Stock Exchange ◽  
Momentum Effect ◽  
Using Data

This study aims to examine the momentum effect presence in selected stocks of Pakistan stock market using data from Jan 2007 to Dec 2016. This study constructed the strategies includes docile, equal weighted and full rebalancing techniques. Data was extracted from the PSX – 100 index ranging from 2007 to 2016. STATA coding ASM software was used for calculating momentum portfolios, finally top 25 stocks were considered as a winner stocks and bottom 25 stocks were taken as a loser stocks. In conclusion, the results of the study found a strong momentum effect in Pakistan stock exchange PSX 100- index. As by results it has been observed that a substantial profit can earn by the investors or brokers in constructing a portfolio with a short formation period of three months and hold for 3, 6 and 12 months. There is hardly a study is present on the same topic on Pakistan Stock Exchange as preceding studies were only conducted on individual stock markets before merger of stock markets in Pakistan while this study leads the explanation of momentum phenomenon in new dimension i.e. Pakistan Stock Exchange. Keywords: Momentum, Portfolio, Winner Stocks, Loser Stocks

Analysis of Impacts Malaysia's Territorial Limitation (Lockdown) Policy on Indonesia-Malaysia Border Area, Sanggau District

2020 ◽  
Vol 11 (1) ◽  
pp. 156-156
Author(s):  
Ira Patriani
Keyword(s):  
Social Issues ◽  
Negative Impact ◽  
Research Approach ◽  
Border Area ◽  
Border Areas ◽  
The Government ◽  
Using Data ◽  
Virus Spreading ◽  
Kinship Ties ◽  
Collection Methods

Border areas, is one of affected area on COVID_19 this present. Many of people cn not go out as usually, adding almost each country has to implement their territorial limitation (lockdown policy) to minimalize this virus spreading. One of Malaysia State, where very close and get direct border with Indonesia. This research took place at Sanggau District, Entikong, Gun Tembawang Village.The research approach used is qualitative, using data collection methods in the form of interviews, observations, and documentation supported by interviews with the theoretical approach to the negative and positive aspects on policy implementation. Research results, The results stated that the lockdown activities of Malaysia which were affected by the corona virus outbreak needed to be carried out in an effort to minimize the spread of the virus outbreak. Although of course it has a negative impact on the country's economic structure, social issues and other sector. In implementing this lockdown, there is a need for cooperation between the government and the community as well as an agreement with neighboring countries in terms of the mobility of residents closest to each other's territory on exemptions in order to realize social welfare and public health without limiting the origin of the state, religion, community and profession. Especially in border areas where mobility and kinship ties have always been closer than in other regions. Keywords: Border area, lockdown policy, covid_19

The Frustration Regulation Journal: A Reflective Framework for Educators

Relay Journal ◽  
2019 ◽  
Author(s):  
Sam Morris
Keyword(s):  
Emotion Regulation ◽  
Process Model ◽  
Negative Impact ◽  
Language Education ◽  
Short Article ◽  
Language Classroom ◽  
As Stress ◽  
And Control ◽  
Important System ◽  
Behavioural Strategies

Teachers and advisors involved in the emotional business of language education feel frustrated from time to time, and if such emotions are not managed healthily, they may lead to negative outcomes such as stress and burnout. One important system for taking control of frustration is emotion regulation, the cognitive and behavioural strategies through which individuals manage their emotions. In this short article, I define frustration and discuss its negative impact on the language classroom. I then introduce a structured reflective journaling tool, built upon Gross’s Process model of emotion regulation (Gross, 2014, 2015) which may help teachers and advisors develop greater awareness and control over experiences of frustration.

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